Published date: 28 February 2022

Consolidating the NHS office estate to save the NHS £1.9 million

Caxton Road and Falcon House, Preston


Customers: North of England Commissioning Support Unit (NECS), and the Cervical Screening Administration Service (CSAS) which sits within NECS

NHSPS representatives: Mark Owens, Senior National Office Programme Manager, Zak Limbada, Senior Property Manager, Mike Hill, Senior Construction Manager, Colin Maylor, Facilities Service Manager, Phil Potter, Senior Transaction Manager, Muhammad Arham, Principal Evaluation & Analytics Manager, Lucy Burns, Evaluation & Analytics Analyst


Following the relocation of the principle occupier and with no further health service requirements, 3 Caxton Road, an office facility which NHSPS had freehold ownership of, was found to be significantly underutilised (a void of 85% below capacity), equating to surplus holding costs of c£250k per annum.

As part of the NHSPS Healthy Places programme, we worked with NECS CSU - the sole occupier - to consolidate the office space onto a smaller footprint, delivering a more efficient estate and cost savings during the disruption and uncertainty of the Covid-19 pandemic.


NHSPS teams ran an assessment of options to ensure that the NHS estate was optimally occupied, suited to support the occupier’s needs and deliver best value. Office space at Falcon House in Preston was identified for NECS, which was ideally located within the same business park as 3 Caxton Road.

Using our covenant strength and market conditions to negotiate favourable terms for the NHS, a deal (which included Landlord investment and rent free incentives) was struck by our Property Management team with the Landlord at Falcon House. This secured accommodation for NECS CSU across a 5 year term with a break at year 2. CSAS also operate from Plaza 27 in Leeds and there was a requirement to align lease dates at both facilities, with the expiry of the service contract in 2022 to ensure maximum flexibility for the service.

We invested £80,000 to refurbish the space at Falcon House, designing the new space in consultation with NECS CSU and then tendering out the work. Our Construction team worked closely with the Landlord to ensure the agreed work schedule (a diving wall and AC replacement) did not impact our overall programme. An additional £20,000 of costs were avoided as we were able to reuse new furniture (at zero cost) that was no longer required by the Co-op, due to change in working behaviours due to the pandemic. 

Our Facilities Management team also supported throughout the project; mobilising Falcon House as well as decommissioning and mothballing of 3 Caxton Road. They are now involved in the ongoing maintenance of the site, which is managed through our centralised help desk function.

This project has helped NECS to consolidate its CSAS functions onto a smaller footprint (reduction of 104 sqm), and has freed up 3 Caxton Road for a disposal. Our Transactions Team led this disposal, initiating the marketing process early to reduce holding costs, and they ensured that the value as a capital receipt (£1.525m) could be reinvested back into the Lancashire & South Cumbria health economy.


We have released 2,081sqm by consolidating onto a more efficient footprint at Falcon House. This will deliver £1.9 million in savings to the NHS over a five-year period, which can be reinvested elsewhere in the NHS. 

Investment at Falcon House has improved the office working environment for CSAS, delivering a more fit for purpose office space that is better set up for smarter and more flexible working, and it has promoted positivity and productivity.

Learn more about Healthy Places

The NHSPS Healthy Places programme spans 300 projects nationwide this year, which will transform the NHS estate nationwide, support Integrated Care Systems, and enable excellent patient care.

Learn more